Goldman Sachs Group Inc. (NYSE:GS) Posts Highest Profit in 5 Years

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Goldman Sachs NYC Headquarters

Goldman Sachs NYC HeadquartersGoldman Sachs Group Inc. (NYSE:GS) announced that the company’s profits are at a 5-year high. All of the major businesses under the company’s ownership beat analyst estimates this past quarter. Income is up 40% to $2.84 billion. A year earlier, income was just $2.03 billion.

Earnings per share rose to $5.94 from $4.02.

Currently, the company’s equities saw a 46% gain while the company’s bond-trading revenues rose by 12%. This is higher than JPMorgan Chase & Co (JPM), which is the biggest bank in the country based on assets.

Analysts state that the company’s results are staggering and should entice investors to buy company stock.

Interestingly, the company’s stock is down by 0.5% on the day despite the good news.

Company revenues rose to $10.6 billion, up 14%. Revenues are the highest the company has seen in four years. The company’s equities division saw revenues greatly exceed initial estimates of $1.73 billion, reaching $2.34 billion.

The biggest expense for Goldman Sachs is the company’s compensation payouts. Compensation rose to $4.46 billion, or 42% of the company’s revenue. This is down from the first quarter of 2014 where compensation was 43%. The company has cut compensation levels to help boost returns on the company’s stock.

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